Aravindan Chinnaraja Business owner, set up in Leeds

When Aravindan Chinnaraja opened an office in Malaysia he qualified for five years of tax-free operations. Now his digital marketing services company, Branded3, employs 10 people at his offices near Leeds and 25 in Malaysia.

He said Malaysia's tax break for innovative companies is the kind of initiative that should be adopted here. "There is a risk in setting up a business and people need to be rewarded for taking on that risk," he said. "In the present economic environment, when things are getting tougher, the chancellor is increasing taxes and bureaucracy for businesses."

An increase in capital gains tax on the sale of business assets from 10% to 18% will hit him when he sells his firm. With a growing list of clients from Tesco and the investment bank JP Morgan to Interflora, he hopes to raise sales from the current £1.2m to £5m before a sale.

He said the budget would increase tax by 80% on his capital gains. "I was expecting to pay 10% tax when I set up my business and now it has gone up to 18%." He said claims that it simplified a complex tax regime are "always a cover for governments taking more money".